Stock Market Maintain Positive Momentum, Gains N1.78tn in Three days

Kayode Tokede

The stock market of the Nigerian Exchange Limited (NGX) has appreciated by N1.78trrillion in the first three days of 2024 to sustain its positive momentum from closing of 2023 trading activities.

Specifically, the overall stock market capitalisation closed yesterday at N42.694 trillion, gaining N1.78trillion or 4.34per cent from N40.917 trillion it opened for trading this year.

The NGX All-Share Index increased to historic 78,020.54 basis points, representing a growth of 3,246.77basis points or 4.34per cent from basis points when the stock market closed for trading in 2023.

The breakdown revealed that on the first trading day in 2024, investors bargain hunting in Airtel Africa Plc and 49 others underpinned a N667 billion increase in the overall capitalisation. As a result, the NGX All-Share Index gained 1,217.11 basis points or 1.63 per cent to close at 75,990.88 basis points.

THISDAY had reported that on the second day of trading activities, the stock market sustained the uptrend performance with a gain of N847 billion, as bargain hunting in Presco Plc and 71 underpinned market performance.

Consequently, the NGX All Share Index gained by 1,546.69 basis points or 2.04 per cent to close at 77,537.57 basis points. Also, market capitalisation gained N847 billion to close at N42.430 trillion.

Closing yesterday, the stock market gained N264.3billion to close at N42.694trillion in market capitalisation, while the NGX All Share crossed the 78,000 basis points to 78,020.54 basis points, gaining 482.97basis points or 0.62per cent from  77,537.57 basis points.

Capital analysts had predicted sustained positive momentum this year over early passage of the 2024 budget, and Federal Government policy reforms.

The CEO, Wyoming Capital and Partners, Mr. Tajudeen Olayinka, in a chat with THISDAY explained that the stock market has witnessed positive momentum in 2024 and  it can draw that from 2024 budget proposal of President Tinubu, where total reliance has been placed on the use of private capital in funding some important developmental projects across the country.

According to him, “In a way, we are going to see more public companies get listed on the stock exchange for the purpose of raising new capital, while the existing listed companies will not be left behind in this development.

“So, I see a very bullish and active primary market in 2024, even though, there could be occasional moderation in price movement across the board, as investors take profit and engage in portfolio rebalancing.

“The fact that private sector will take the lead in navigating the economy out of its prolonged state of disequilibrium, we will see a better capital market in 2024.”

Managing Director, ARM Securities Limited, Rotimi Olubi explained that, “This optimistic trajectory appears to be an extension of the momentum gained in the previous year, instilling fresh confidence among local investors in the equities market following its impressive 2023 performance (45.90per cent YtD). This confidence persists despite challenges both domestically and globally. Moreover, it seems investors are strategically positioning themselves in high-dividend yielding stocks in anticipation of the imminent release of the 2023FY earnings results.

“In light of these developments, our recommendation is for investors to focus their attention on stocks exhibiting robust fundamentals, particularly within the Banking and Oil and Gas sectors. This strategic approach aligns with the current market dynamics and positions investors favorably in anticipation of future trends.”